USDA begins process to open border to older Canadian cattle

By DALE HILDEBRANT, For Minnesota Farm Guide
Saturday, September 29, 2007 1:59 PM MDT

Will the U.S. livestock industry be in danger if borders are opened to older Canadian cattle? The USDA has approved Rule 2 which opens the borders, and Congress has 60 days to review the rule.

Citing the need to harmonize the cattle trade with countries presenting a minimal risk of introducing bovine spongiform encephalopathy (BSE) into the United States, the U.S. Department of Agriculture, on Sept. 14, published rules that will eventually allow older Canadian cattle to move south across the border.

Dr. John Clifford, USDA's Chief Veterinary Officer said the new rule (Rule 2), which was based on science, will allow cattle over 30 months (OTM) of age and those born after March 1, 1999, to come into the U.S. Since Congress has a 60-day period to review the rule, the earliest cattle would be allowed in under the new rule is Nov. 19.

In announcing the expanded acceptance of Canadian cattle, Clifford noted that an extensive review and comment period had been conducted by the USDA prior to advancing the new ruling.

“All of the peer reviewers agreed with the risk assessment conclusion that the likelihood of BSE becoming established in the U.S. cattle population by allowing additional commodities from Canada is negligible,” Clifford said during a news conference.

“In our risk assessment, we carefully considered all of the steps in both Canada and the United States that would have to occur for BSE to spread to an animal here in the United States,” he said. “The risk assessment acknowledged that BSE is present in Canada and that there likely would be additional cases identified in the future, and we still concluded that these imports would present a negligible risk of establishment of BSE in the United States.”

However, many don't express the same degree of confidence in the USDA risk assessment, especially considering the unproven Canadian ruminant-to-ruminant feed ban, which prohibits the inclusion of any bovine by-products in cattle feed, which is thought to be the main way BSE is spread.

“The Canadian ban on contaminated feed, that is believed to be the source of BSE, is still unproven,” N.D. Agriculture Commissioner Roger Johnson said. “Until Canada can prove that they are strictly enforcing the proper safeguards, it is risky to allow these higher risk animals into the U.S. Infected Canadian animals have already been responsible for millions of dollars in lost U.S. exports.”

The Canadian feed ban was also on Sen. Kent Conrad's (D-N.D.) mind during his comments on the USDA proposal.

“I've asked USDA for any evidence that Canada is taking a more serious approach to its feed ban and effort to prevent the spread of mad cow,” Conrad said. “Until we have that documentation, I believe it is simply foolish to allow these older cattle that are at the greatest risk into the United States. It threatens our markets and our own trade with other nations.”

In December 2003, the first case of BSE in the U.S. was found in a dairy cow in Washington state. That cow had its origins in Canada and the U.S. beef industry has suffered since then with a drop in cattle prices due to loss of beef export markets, some of which haven't been regained yet. With hope of restoring some of those lost export markets, the National Cattlemen's Beef Association (NCBA) is supporting the USDA move.

“We should definitely see a positive impact on our export opportunities for both live cattle and boxed beef,” said Bill Donald, a Melville, Mont., rancher who serves as vice chair of the NCBA Policy Division. “Armed with a minimal risk classification for BSE, the United States has also been pressing our trading partners to accept beef from older cattle. We've had some success, but many still hold to the 30-month limitation. As you might guess, some countries cite our policy toward Canada as a rationale for maintaining the status quo. Those countries are intently watching our action on this rule. Retiring this 30-month barrier is certain to pay dividends, as we work to regain global market share for the best and safest beef in the world.”

However, Rep. Earl Pomeroy (D-N.D.) fears just the opposite will happen - that some of the current markets we have recovered may be closed to us if this ruling is implemented.

“We have worked very hard to convince countries that closed their markets to U.S. beef after the Canadian mad cow incident in 2003 that U.S. beef is safe,” Pomeroy said. “I fear that opening our markets to more Canadian imports now could take us a giant step backward in that effort. We should not be opening our border to more Canadian cattle before the United States gains back the export markets we lost.”

And R-CALF-USA president Max Thornsberry is quick to point out that the responsibility of USDA is not to improve trade relations, but rather to protect U.S. agriculture.

“USDA is supposed to look out for the welfare of the U.S. livestock industry,” he asserted. “So how in the world did USDA get the authority to decide it's in the United States' best interest to continue pushing for the ‘no borders' approach to create a North American cattle herd, which continues to jeopardize the health of the U.S. cattle herd?”

Thornsberry, who is a Missouri veterinarian, noted that the U.S. Centers for Disease Control recently concluded that Canadian cattle are 26 times more likely to test positive for BSE than U.S. cattle.

Besides the risk of diseased cattle from Canada commingling with U.S. cattle, R-CALF and other groups are worried what the impact of thousands of new cattle coming south from Canada will have on the domestic cattle market.

Steve Roth, president of the Montana Stockgrowers Association (MSGA) and a rancher from Big Sandy, Mont., said his group is concerned about the potential fall in cull cow prices.

“The most significant concern is the Nov. 19th implementation date which falls at the height of our region's cull cow marketing and results in a disorderly market transition,” Roth said. “More importantly, this does not address the enhancement and maintenance of the economic viability of the U.S. cow/calf herd.”

But NCBA's Donald doesn't expect much impact on the cattle market because of this latest USDA action.

“As for calf, feeder cattle and fed cattle prices - we just don't expect much of a negative impact,” Donaldsaid. “Calf prices traditionally pull back $5 to $10/cwt during the fall run, and this year will be no exception. But U.S. cattle supplies are tight across the board, so competition for these calves will remain strong.

“As for the Canadian herd, it has declined about six percent since 2005. These numbers indicate there will not be a ‘wall of cattle' to descend from the north as some have predicted,” he added.

During the USDA news conference announcing Rule 2, Clifford refused to answer a question dealing with what percentage of the public comments were supportive or against the rule change.

However, according to a news release from the South Dakota Stockgrowers Association (SDSGA), their group, along with many other individuals and groups, submitted comments opposing the importation of OTM cattle. These comments, according to SDSGA president Larry Nelson, were apparently ignored by APHIS (Animal and Plant Health Inspection Service - the USDA branch given authority on these matters).

“Once again APHIS did not use sound science in making a decision that is not only a risk to the health of our nation's herd, but also endangers the safety of our consumers,” said Rick Fox, SDSGA past president, from Hermosa, S.D. “It seems the United States is becoming a dumping ground for food and food products that other countries will not accept.”

Thornsberry indicated Rule 2 might be in the news for some time to come.

“Because Rule 2 is deemed ‘economically significant', Congress will have 60 days to review the rule,” he said. “R-CALF USA will continue to work with Congress in an effort to have Rule 2 withdrawn, but if that falls short, R-CALF USA is prepared to take the matter to court.” 

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